UGANDA, Kalungu | Real Muloodi News | Kalungu District councillors are debating new property tax proposals that extend the levy to rural sub-counties, causing significant concern among local officials.
The proposed property tax would apply uniformly across the district, marking a change from the current system.
During a district council meeting chaired by Deputy District Speaker Dorothy Nakitende on Monday 20th May, 2024, District Vice Chairperson Gerald Kiggundu presented a draft policy proposing the extension of property tax to sub-counties.
The new property tax proposals would affect the sub-counties of Bukulula, Lwabenge, and Kalungu, extending the levy beyond the town councils of Kalungu, Kyamulibwa, and Lukaya.
“We want to widen our tax base,” Kiggundu stated. “Under the new proposal, the district council is taking up the role of setting and harmonising property rates, with a uniform rate to be charged across the entire district, including the sub-counties.”
Currently, building owners in Kalungu Town Council pay a property tax rate of 10 per cent, while those in Kyamulibwa pay 8 per cent.
The new property tax proposals suggest an 8 per cent tax rate for the rural sub-counties. This uniform rate is intended to streamline tax collection and increase district revenue.
A section of councillors, led by Rashid Kwaba, who represents Kalungu Town Council, expressed concerns about the new property tax proposals.
Kwaba argued that a uniform rate might be unfair to rural areas with fewer qualifying buildings.
“Some sub-counties have few buildings that qualify to pay property tax,” Kwaba noted. “Asking owners of buildings in sub-counties to pay property tax at 8 percent is unfair and could force building owners to increase rent, potentially driving away tenants.”
Kwaba suggested that the proposal be reconsidered by the district finance and planning committee for further discussion.
The debate over the new property tax proposals comes as Kalungu District presented its 2024/25 financial year budget.
The budget totals USh36.3 billion, with USh19.2 billion allocated to social services and education, USh2.3 billion to agriculture, and USh1.6 billion to roads.
According to the 2014 National Housing and Population Census report, Kalungu District has 41,405 households. Of these, 39,859 (96.3 per cent) live in houses constructed with permanent roof materials.
Additionally, 21,307 (51.5 per cent) of households reside in semi-permanent houses, while 1,387 (3.3 per cent) live in temporary houses.
Busoga North Police Spokesperson Michael Kasadha highlighted the necessity of legal and safe fuel storage to prevent tragedies like the Buyende house fire.
“We would like to appeal to individuals dealing in fuel to ensure that they are operating legally and store fuel safely to prevent fire outbreaks,” Kasadha said.
Hillary Kalyango, Buyende District Youth Council chairperson, emphasised the risks associated with informal fuel vendors.
“The fishing communities and boda boda riders find it easier to buy fuel from roadside and home vendors, saying they are sure of the quantity, notwithstanding the risks involved,” Kalyango noted.
Property taxes are a significant source of revenue for local governments, providing funds for essential services such as education, healthcare, and infrastructure.
The new property tax proposals in Kalungu District aim to increase the tax base to support these services more effectively.
The new property tax proposals in Kalungu District reflect an effort to broaden the tax base and generate additional revenue for local government services.
However, the proposal has met with resistance from some councillors concerned about the fairness and economic impact on rural areas.
As discussions continue, the district must balance the need for increased revenue with the economic realities of its residents.
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